22 November 2019

22nd November 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Loyalty
  • Authentication & Biometrics
  • Digital & Retail Banking
  • Fraud & Cybersecurity
  • Open Banking & PSD2
  • Blockchain/DLT/Cryptoassets
  • Corporate Activity
  • EPC/SEPA
  • ECB
  • Brexit
  • Regulation

DIGITAL & eCOMMERCE

Mastercard has launched its first UK campaign for a debit product.

The campaign points out the increasing prevalence of contactless payment, and highlights that ‘priceless moments’ can be had every day, without the need for credit.

 

PayPal and Mastercard are extending the Instant Transfer service for users in a number of European countries.

Based on Mastercard Send, the service enables PayPal users to transfer their account balances to eligible Mastercard cards, typically within seconds. It is not entirely clear when PayPal will launch the service or in which European countries.

 

A Barclays report indicates that manufacturers are increasingly adopting a Direct to Consumer (DTC) sales strategy.  Report

Manufacturers are cutting out retailers and wholesalers and selling their products direct to consumers in one of the biggest shake-ups the industry has seen in generations, as companies embrace technology to sell and distribute their own goods via social media and the internet. The report suggests 73% of companies now sell direct to consumers.

 

TikTok is reported as looking at entry into the online shopping market.

The social media app is enabling content creators to link directly to third-party websites but is apparently only available to around 20 top influencers at this stage.

 

ACQUIRING/PROCESSING

Isbank is to support acceptance of Discover Global Network Cards in Turkey.

Linking via BKM, Isbank is adding all cards that run on the Discover Global Network to its card acquiring network – 12,000+ e-commerce merchants, 400,000 PoS merchants and 6,500 ATMs.

 

Sberbank is to support American Express to expand acceptance to Sberbank’s Russian merchants.

The agreement will enable Sberbank merchants to accept American Express cards online and in-store as well as allowing Amex Cardmembers to use Sberbank’s ATM network for cash withdrawals.

 

Cardstream is partnering with Banking Circle to develop a joint white label lending solution.

The new initiative will enable Cardstream’s 200+ partners to provide their SME merchants with access to affordable, flexible business loans.

 

LOYALTY

Skrill has announced the launch of a new loyalty programme, Skrill Knect. Web site

Skrill Knect rewards customers for building and maintaining connections with the movement of money to friends, family and businesses. It has launched in 30 European countries including the UK, France, Germany, Spain, Austria, the Netherlands and Bulgaria, with plans to roll it out in all countries where Skrill is available.

 

AUTHENTICATION/BIOMETRICS

Barclays has released a new and improved version of its finger vein scanner for business customers.

Using Hitachi’s VeinID technology, the new ‘Barclays Biometric Reader’ handset is smaller than its predecessor and uses infra-red technology to scan individual finger vein patterns.

 

Swiss Corner Bank has launched a biometric credit card.

The new Cornèrcard Biometric Gold Visa is produced by Gemalto with Fingerprint Cards’ T-Shape sensor module and software platform. The limited-edition card will be issued to 100 Swiss Corner Bank customers, giving them the ability to make contactless payments with no amount cap.

 

DIGITAL & RETAIL BANKING

Yolt has announced an integration with Revolut.

Revolut customers will be able to use the Yolt app to analyse all their transactions, including those made outside of the UK – as well as set budgets, monitor spending and manage their investments.

 

CaixaBank and Salesforce have reached an agreement for the joint development of technological innovation for financial services.

CaixaBank is to implement CRM technologies to enable employees to provide the best possible user experience to customers. It will also join the “Salesforce Financial Services Cloud Design Partner Program” while Salesforce will participate in the “la Caixa” Banking Foundation aid programmes.

 

Wirecard has announced that boon Planet current account holders will receive interest of c0.75% from the beginning of 2020.

It has also indicated that the Planet offer will be expanded to include further investment options with users no longer having to leave the app to manage their everyday finances. The new interest rate will be available to all boon Planet users in Germany from the beginning of 2020 and will be launched in further countries in the near future.

 

Orange Bank says it has now signed up over 500,000 customers since its launch 2 years ago.

Up from around 320,000 customers at the end of June, some 25% of new customers are being attracted to the French telco subsidiary by the availability of its loan products. Google Pay will soon be available for customers with Android phones.

 

Fujitsu ReportTechnology and the new banking customer.

The report, featuring the views of over 8,500 European consumers, paints a picture of a consumer that’s more demanding, but also more discerning, when it comes to how technology is used in their banking and insurance experience. 40% of the British public don’t trust challenger banks at all and 77% admit to only banking with a traditional bank.

 

FRAUD & CYBERSECURITY

American Express has released its 2019 Digital Payments Survey for the US.  Full Report

The survey says that 69% of US merchants reported that a significant amount of company time and expense is dedicated to dealing with payment fraud with the merchants surveyed estimating an average of 27% of their annual online sales to be fraudulent transactions!

 

nsKnox and KPMG have agreed a strategic partnership to form KPMG Secure Payments. Details

Using nsKnox’s fraud prevention technology, Secure Payments delivers a holistic managed service that combines advanced supplier and account verification capabilities, robust payment data protection, and a global payee repository.

 

OPEN BANKING & PSD2

FCA SpeechOpen Finance: an opportunity for financial services

The FCA sees Open Finance as an opportunity to build on the conceptual framework of Open Banking and allow consumers and SMEs to access and share their data with TPPs. It is part of a broader data-sharing initiative and will require coordination and consistency across sectors.

 

BIS has published a Report on open banking and APIs.

The Report monitors the evolving trend of open banking observed in Basel Committee member jurisdictions and discusses the implications of these developments on banks and banking supervision.

The Chair of the Basel Committee has given a related speech – Financial technology: the 150-year revolution

 

Konsentus has published an analysis of PSD2 TPPs approved to provide services across the EEA.

The data shows the number of TPPs approved in each Home Member State; those passported to Host Member States; the types of services these TPPs are registering to provide and the upward trend seen since the regulation was implemented. The UK is well ahead of the rest. 95% of TPPs are registered as AISPs.

 

PwCDigital Ecosystem Banking – opening up new opportunities.

Open Banking was just the start. In the wake of regulatory changes and technology-enabled disruption, customer expectations around banking, payments and associated financial products have radically shifted. Responding to this need will require banks to not simply transform their model, but also their mindset.

 

Mulesoft is supporting HSBC with its digital bank development.

HSBC is leveraging MuleSoft’s Anypoint Platform to build its global digital banking platform. Using the Anypoint API Community Manager, HSBC is building open banking APIs that securely unlock access to core banking products to enable collaboration with partners, accelerate innovation and open new revenue channels.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

The UK Jurisdiction Taskforce of the Lawtech Delivery Panel has issued a Legal statement on cryptoassets and smart contracts.

The Statement confirms that cryptoassets are to be treated in principle as property and that a smart contract is capable of having contractual force i.e. is enforceable. The legal statement is expected to benefit customers and investors through the provision of certainty in the UK market.

 

CORPORATE ACTIVITY

Elavon has agreed to acquire the Sage Pay gateway business in the UK and Ireland.

The acquisition is part of Elavon’s strategy to help its business customers grow as the global economy becomes more digital and extends Elavon’s market share in the UK and Ireland, particularly in the SME market. No financial details of the deal have been given.

 

ACI Worldwide has announced a global strategic collaboration with Microsoft via the Microsoft Partner Network.

ACI will deliver its Universal Payments Technology via Microsoft Azure to support the payments industry’s rapid adoption of technology deployed in the public cloud.

 

PayPal is to spend c$4bn to acquire Honey, a technology platform for aggregating and applying online coupons. Presentation

Honey’s discovery tool helps consumers find savings as they shop online. It sits alongside its suite of products and services that includes a mobile shopping assistant, offers and rewards program together with price-tracking tools and alerts. Honey has c17m monthly active users, working across c30,000 online retailers ranging from fashion and technology, to travel and pizza delivery.

 

Accelya is being acquired from Warburg Pincus by Vista Equity Partners.

While no figure has been placed on the transaction, a previous Reuters report indicated a deal could value the Barcelona-based business at as much as €1.5bn, having been acquired by Warburg Pincus for €650m in 2017. HQed in Barcelona with 2,500 employees worldwide, Accelya provides financial, commercial and analytics solutions to the airline and travel industry.

 

EPC/SEPA

The four 2019 EPC SEPA payment scheme rulebooks are now in force.

The latest version of the rulebooks entered into force on 17 November 2019 and are applicable until 21 November 2021.

 

ECB

Christine Lagarde’s first major speech since taking up the Presidency of the ECB – The future of the euro area economy.

 

BREXIT

Azimo has formed a Dutch subsidiary, Azimo BV.

Claiming the move makes Azimo the first UK fintech company to separate its UK and European operations in anticipation of Brexit (really), all Azimo transfers sent from outside the UK are now handled by the new subsidiary.

 

WEX has taken a similar route with an EMI licence, also in the Netherlands.

The move enables WEX to provide services as a payment institution to WEX’s European customers and underpins WEX’s European growth strategy. The company will serve customers across EU and non-EU countries from both its UK and Netherlands offices.

 

REGULATION (US)

The Federal Trade Commission (FTC) has initiated a preliminary inquiry on Visa and MasterCard.

The regulator is looking into whether Visa, Mastercard and other large debit card issuers are blocking retailers from routing card transactions over alternative networks.

 

Industry Videos

Pay.UK short video covering the way it is working to develop  common standards for UK payments.

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